Startup Stronghold on Tuesday announced the launch of a new cryptocurrency with a stable rate or the so-called stablecoin USD Anchor on the blockchain Stellar. The Token will be provided with US dollars, for which the trust company Prime Trust will be responsible. It, in turn, will make a deposit reserve in banks insured by the Federal Deposit Insurance Corporation (FDIC). This is written by CoinDesk.
The leading role in the project is played by the technological giant IBM, which is already considering various possibilities for applying a new token when servicing its clients submitted by financial institutions. The first scenario for the use of the token may be cross-border payments.
Stronghold acts as an “anchor”, which allows you to bind and untie the reserves in the blockchain Stellar. The tokens issued by it provide the right to request dollars held by the Prime Trust and ultimately insured by the FDIC.
The project has obvious similarities with the ambiguous tokenized Tether dollars. In both cases, real fiat reserves are used, the reflection of which in the locker is the cryptocurrency token.
“Speaking about this project, you can not fail to mention Tether”, – said the head of blockchain-service of financial institutions IBM Jesse Lund. “But, of course, there are differences.”
The most obvious difference between USD Anchor and USDT is the FDIC guarantee. Since FDIC covers deposits with the size of less than $ 250,000 only in case of insolvency of the bank, USD Anchor reserves will be split among the many banks insured in FDIC.
Prime Trust follows the same principles as the issuers of recently appeared stable tokens, such as TrueUSD. He conducts identification of clients and their verification in accordance with the requirements for combating money laundering at the time of making deposits and withdrawing funds.
Another difference between the tools Stronghold and Tether is their appointment. While USDT is used primarily by traders who want to avoid the volatility of the cryptocurrency market, IBM sees USD Anchor as a digital currency for financial institutions, which they can use to achieve their own goals.
“We are trying to make digital currencies more appropriate types of everyday transactions, and not just suitable for trade,” Lund explained.
In the future, IBM plans to expand the line of stable digital tokens by adding tokenized euros and pounds, after which they can be used to create a cryptocurrency analogue of the foreign exchange market with all the advantages of blockchain technology.